{Post by Jessica}

Avoid investing errors to get your budget in balance and keep your finances in order.

Tax season is a time when many think about their financial outlook, explore saving or invest wisely to avoid investing errors. This year we are very fortunate to be receiving a slight increase in our income.

Mind you, the increase will be a result of a 9 month deployment. Not fun. Nevertheless, part of me wants to loosen up our budget a bit and have as much fun as possible to help pass the time. Ok, I’m anticipating a little retail therapy too. 😉

My husband on the other hand envisions 100% of that increase heading straight to the bank.

I guess someone has to be the bad guy!

So what exactly should you try to get your budget and finances in order and avoid investing errors?

How to Avoid Investing Errors

Your Budget and Debt

For starters, take a look at your budget.

How’s your credit card balance doing? If you are continuously carrying over a balance, perhaps that extra income needs to be applied there and your spending habits need to be adjusted until you can maintain a zero balance for a few months.

If your debt is paid off (excluding things like mortgages and car payments) consider taking that extra cash and putting it to work through investments.

Consulting a financial adviser is recommended if you are just getting started or need help reorganizing what you already have set up. There are great tips in this article too: 6 Tips for Your Finances.


It’s inevitable that if you invest in the stock market, you’ll make some mistakes. I did this by purchasing a large share of penny stocks against the recommendation of my financial advisor. A friend of mine was experiencing huge gains, and it was attractive.

You can only guess what happened to the price of that stock shortly after I invested. Let’s just say, that was a hard lesson to learn.

If you are ready to set out on your own and make your money work for you, here are a few ways you can learn to avoid investing errors:

1. Pay off your credit card debit before investing. You’ll likely lose more in credit card interest than you’ll gain in the stocks.

2. Investing too conservatively. Long-term investments are likely to grow most rapidly in stocks, versus bonds or CDs.

3. Investing too aggressively. Don’t aim for fast, huge wins (like I did with the penny stock). Instead aim for steady growth over decades by investing in healthy growing companies.

4. Over-or-under-diversifying. If all of your eggs are in one basket you may be exposed to too much risk. Most online investment companies will provide you with goals for diversifying your funds.

5. Focusing too much on a stock’s price. A cheap stock (like penny stocks) aren’t always a good bargain. Sometimes just a few shares of a more expensive stock will provide better growth.

6. Investing in what you don’t understand. Do your research on any company you are considering investing with. The more familiar you are with how a company works and how well it’s performing, the fewer unpleasant surprises you’ll likely encounter.

7. Impatience. Building wealth takes time, so keep an eye on things, set reasonable goals, and don’t expect to get rich quick. Investing gains requires a long-term financial outlook.

To get started, create your own home budget and focus on these tips for getting your finances in balance. If your budget is still too tight, get a free home business consult. A home based business can help you earn while still remaining at home with the kids.

Avoid investing errors to get your budget in balance and keep your finances in order.

Jessica Stremer of Five O'Clock JellyJessica is a stay at home mom of two lovely little girls. She is also a military spouse and an entrepreneur. Jessica enjoys staying active and spending time outdoors with her family, cooking, and reading. In addition, Jessica is hard at work growing her company Five O’Clock Jelly.


One income not enough? Build a home-based business and start with a free consult from moms who have built successful home=based businesses at home. Being a stay-at-home mom doesn't mean your families financial future has to take a back seat. Get your free goals consult today.